Foot Locker Inc. (NYSE: FL) shares rose on Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, stocks were set to open up this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Shares of Foot Locker Inc. (NYSE: FL) were downgraded by analysts at Piper Jaffray Cos. in a note to their investors today. Piper Jaffray Cos. currently has a rating of Neutral on the shares. As a means of comparison, a number of other analysts have spoken on the company in recent days, and the company has earned a consensus one-year price target of $76.24, above the opening price of $71.35, a difference of 10.54 percent. Foot Locker Inc. stock has a 52-week high of $73.37. Considerable and major changes in the company’s procedures, future vision or industry can cause downgrades as the analysts consider that the future prospects for the security have diminished from the initial recommendation.
Foot Locker Inc. (NYSE: FL) shares last traded at $72.36, an increase of $0.58 or 0.81% compared to the previous closing price. Opening at $71.35, they varied from $71.18 and $72.64 throughout the day.
Foot Locker Inc. (NYSE: FL) now has a market cap of 9.64B.
Foot Locker Inc. (NYSE: FL) Average Daily Trading Volume
450,891 shares traded hands yesterday, lower than normal, out of a total float 131,549,000. Trading volume is likely to increase in the next few days as investors often use swings in trading volume to determine heavy volume growth or dissemination by institutional investors.
As with all possible breakouts, investors watch for volume to be at least 40%-50% greater than normal on the breakout to indicate that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.
Foot Locker Inc. (NYSE: FL) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By marking the activity of these professional investors and how they influence moving averages,it allows for traders to make more effective choices on trades.
With that in mind, Foot Locker Inc. (NYSE: FL) now has a 50-day MA of $68.33 and 200-day MA of $61.92. It has traded in a 52-week range between $50.90 – 73.3700 and today’s last price is 1.38%% lower than the 52 week high of $73.37.
Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have been successful at growing their earnings at least 25% or more over a 3 year period.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.